The New Faces of Informality in Central America

Abstract

The current productive restructuring in Central America is creating significant changes in the region's labour markets. New sectors of tradeables are emerging which, from the point of view of labour, cannot be characterised as formal. Indeed, formal employment is currently in a state of decline while the informal sector is redefining its internal heterogeneity. This article focuses on the new expressions of informality. Three scenarios are identified: the economy of poverty, subcontracting, and the agglomeration of small dynamic enterprises. Various analytical aspects are considered in each of these three scenarios: the context of the globalisation process; the type of informality; the resources which are mobilised; the challenges faced; and the identities generated. The analysis is based on the evidence supplied by three case studies. The first refers to the former public employees of Managua (Nicaragua) who, in the aftermath of state reforms, presently pursue informal activities. The second example concerns a group of women in the community of Puente Alto (Honduras) who work as subcontracted producers for an industrial export firm. Sarchí, Costa Rica's principal artisan centre, illustrates the third scenario.